Expand Energy Corporation (NASDAQ:EXE) is one of the best inexpensive stocks to buy according to hedge funds. On September 3, KeyBanc lowered the firm’s price target on Expand Energy to $127 from $135, while maintaining an Overweight rating on the shares. The firm says its updated estimates reflect KeyBanc’s revised natural gas price forecast. In Q2 2025, the company reported a net income of $968 million. The company’s average daily production was ~7.20 billion cubic feet equivalent/Bcfe, with natural gas ...

A month has gone by since the last earnings report for Expand Energy (EXE) . Shares have lost about 8.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Expand Energy due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Expand Energy Corporation before we dive into how investors and analysts have ...

Core Insights - Extendicare Inc. reported strong financial results for Q2 2025, with significant growth in revenue and adjusted EBITDA, driven by strategic acquisitions and increased demand for services [3][8][15]. Financial Performance - Revenue for Q2 2025 increased by $35.0 million to $383.4 million, representing an 11.4% growth when excluding out-of-period LTC funding from Q2 2024 [15][29]. - Adjusted EBITDA rose by $5.3 million or 15.4% to $39.8 million, reflecting growth in home health care and long-term care segments [8][15]. - Net earnings increased by $6.0 million to $31.9 million, supported by higher adjusted EBITDA and other income [15][30]. Strategic Acquisitions - The company completed the acquisition of Closing the Gap for approximately $75.1 million, expected to add 1.1 million service hours to the home health care segment [3][10]. - The acquisition of nine LTC homes from Revera for $41.3 million was finalized, enhancing the company's long-term care portfolio [6][15]. - The sale of three LTC projects to Axium JV generated net cash proceeds of $56.3 million, resulting in a gain of $11.1 million [4][15]. Operational Highlights - Home health care average daily volume (ADV) increased by 10.9% to 33,310 in Q2 2025 [8][23]. - Long-term care average occupancy rose to 98.3%, up 50 basis points from the previous year [19][20]. - The number of third-party and joint venture beds serviced by SGP reached approximately 149,300, a 5.9% increase from the prior year [24]. Financial Position - As of June 30, 2025, Extendicare had cash and cash equivalents of $72.6 million, with access to an additional $152.2 million under its revolving facility [26]. - The company increased its senior secured credit facility to $375.0 million, enhancing liquidity for future growth [3][8]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.042 per share for August 2025, payable on September 15, 2025 [31].

Core Insights - Extendicare Inc. reported strong financial results for Q2 2025, with significant growth in revenue and adjusted EBITDA, driven by strategic acquisitions and increased demand for services [3][8][14]. Financial Performance - Revenue for Q2 2025 increased by $35.0 million to $383.4 million, representing an 11.4% growth when excluding out-of-period funding from Q2 2024 [14]. - Adjusted EBITDA rose by $5.3 million or 15.4% to $39.8 million, reflecting growth in home health care and improvements in long-term care [8][14]. - Net earnings increased by $6.0 million to $31.9 million, supported by higher adjusted EBITDA and other income [14][21]. Acquisitions and Transactions - The company completed the acquisition of Closing the Gap for approximately $75.1 million, expected to add 1.1 million service hours to the home health care segment [3][9]. - Extendicare acquired nine long-term care homes from Revera for approximately $41.3 million, enhancing its portfolio [6][14]. - The sale of three long-term care projects to Axium JV generated net cash proceeds of $56.3 million, resulting in a gain of $11.1 million [4][14]. Operational Highlights - Home health care average daily volume (ADV) increased to 33,310, a 10.9% rise from Q2 2024 [8][22]. - Long-term care average occupancy improved to 98.3%, up 50 basis points from the previous year [17]. - The number of third-party and joint venture beds serviced by SGP reached approximately 149,300, a 5.9% increase from the prior year [23]. Strategic Initiatives - The Ontario government announced a new capital funding policy for long-term care homes, providing greater funding flexibility for redevelopment projects [5]. - Extendicare is advancing 18 redevelopment projects to align with the new funding program [5]. Financial Position - As of June 30, 2025, Extendicare had cash and cash equivalents of $72.6 million, with access to an additional $152.2 million under its revolving facility [25]. - The company increased its senior secured credit facility to $375.0 million, enhancing its liquidity position [3][8]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.042 per share for August 2025, payable on September 15, 2025 [30].

Market Overview - The S&P 500 index has experienced an increase of over 8% year-to-date despite a significant decline in early April due to tariff announcements from the Trump administration, indicating underlying market uncertainty [1] - Investor sentiment was affected in late July following the Federal Reserve's decision to maintain interest rates amid persistent inflation [1] Qifu Technology - Qifu Technology Inc. (NASDAQ: QFIN) is undergoing a rebranding to Qfin Holdings and has shown strong year-over-year profit growth, with a non-GAAP net income increase of 59.9% in the latest quarter [3] - The company has established new partnerships with mid-to-large municipal banks in China, resulting in a 144% year-over-year growth in loan volume for its technology solutions business [4] - Current stock price is $33.65, with a 12-month price forecast of $51.73, indicating a potential upside of 53.74% [2] Expand Energy - Expand Energy Corp. (formerly Chesapeake, NASDAQ: EXE) is positioned to benefit from increasing natural gas demand, particularly in the AI and data center sectors [7] - The company reported revenue of $3.7 billion, significantly exceeding analyst expectations of $2.1 billion, although it missed EPS estimates by 4 cents [8] - Current stock price is $101.97, with a 12-month price forecast of $129.50, suggesting a 27% upside potential [6] FTAI Aviation - FTAI Aviation Ltd. (NASDAQ: FTAI) has transitioned from losses to profitability, reporting a major EPS beat of 24 cents per share, driven by strong aerospace product performance [11] - The company has increased revenue by over 52% in the last year and is expected to continue double-digit growth [11] - Current stock price is $137.32, with a 12-month price forecast of $174.33, indicating a potential upside of 26.95% [10]

Core Insights - Expand Energy Corporation (EXE) reported second-quarter 2025 adjusted earnings per share of $1.10, missing the Zacks Consensus Estimate of $1.14, but surpassing the year-ago adjusted profit of 1 cent due to strong production and higher natural gas prices [1][9] - The company's revenues from 'natural gas, oil and NGL' totaled $2 billion, falling short of the Zacks Consensus Estimate by $74 million, yet significantly higher than the year-ago figure of $378 million [2] Production & Price Realizations - Average daily production for the second quarter was 7,202 million cubic feet of gas equivalent (MMcfe/day), a 162% increase from the year-ago level of 2,745 MMcfe/day, exceeding the Zacks Consensus Estimate of 7,150 MMcfe/day [3][9] - Natural gas volume for the period was 6,596 MMcf/day, up 140% year over year, slightly below the consensus mark of 6,600 MMcf/day [3] - The average sales price for natural gas was $2.98 per Mcf, an 18.7% increase from the prior-year realization of $2.51 per Mcf, but below the consensus mark of $3.02 [4] Costs & Expenses - Total operating expenses rose to $2.4 billion from $799 million in the year-ago quarter, primarily due to a nearly threefold increase in gathering, processing, and transportation costs to $563 million [5] - Marketing costs also rose significantly to $791 million from $141 million year over year [5] Dividend and Share Repurchases - In the second quarter, the company returned a total of $448 million to shareholders through a quarterly base dividend of $137 million, a variable dividend of $211 million, and share repurchases totaling $100 million [6] Financial Position - Cash flow from operations totaled $1.3 billion, a significant increase from $209 million in the prior-year quarter, while capital expenditure was $657 million, resulting in a free cash flow of $665 million [7][9] - As of June 30, 2025, the company had $731 million in cash and cash equivalents and long-term debt of $5.1 billion, reflecting a debt-to-capitalization ratio of 22.2% [7] Guidance - Expand Energy is targeting an average daily production range of 7,150-7,250 MMcfe for the third quarter and 7,000-7,200 MMcfe for the full year 2025 [10] - The company has budgeted capital spending between $760 million and $840 million for the upcoming quarter, and between $2.9 billion and $3 billion for 2025 [10]

Core Insights - The article promotes a free two-week trial for the investment group Distressed Value Investing, which provides exclusive research on various companies and investment opportunities [1] - The group has a significant focus on value opportunities and distressed plays, particularly in the energy sector [2] Group 1 - The author, Aaron Chow, has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [2] - Chow co-founded a mobile gaming company that was acquired by PENN Entertainment, showcasing his experience in the gaming industry [2] - The investment group Distressed Value Investing includes over 1,000 reports on more than 100 companies, indicating a comprehensive research portfolio [1][2] Group 2 - The article emphasizes that past performance is not indicative of future results, highlighting the importance of careful investment consideration [3] - It clarifies that no specific investment recommendations are being made, and the views expressed may not represent the broader platform [3]

Financial Data and Key Metrics Changes - The company expects to recognize approximately a 50% increase in annual synergies, translating to an additional $425 million in free cash flow for 2025 and $500 million for 2026 before accounting for NYMEX price changes [6][11] - Capital investments for 2025 have been reduced by approximately $100 million while maintaining production of approximately 7.1 Bcfe per day [9][10] - The company plans to return $585 million to shareholders in the first half of the year through dividends and share repurchases [11] Business Line Data and Key Metrics Changes - In Southwest Appalachia, the company drilled the longest lateral well and improved drilled footage per day by 62% in Northeast Appalachia and 25% in Haynesville [7][8] - The company has achieved a 25% improvement in footage drilled per day since the merger, with well costs in Haynesville around $1,300 per foot [78][79] Market Data and Key Metrics Changes - The company retains operational leverage to the largest gas demand center in North America through its Haynesville position, with over 12 Bcf per day of LNG demand under construction [9][10] - The company expects market volatility to remain a prevailing theme, but believes its investment-grade balance sheet is a strategic asset [11] Company Strategy and Development Direction - The merger aims to create long-term value through cost reduction and a geographically diverse portfolio serving premium markets [6] - The company is focused on optimizing contracts to reduce cash flow volatility and enhance pricing mechanisms [15][16] - The company is exploring various structures for gas sales, including direct sales and partnerships, to maximize value [22] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the long-term demand outlook for the industry and sees opportunities in LNG and power generation [10][11] - The company is prepared to adjust its operations based on market conditions while maintaining a focus on long-term fundamentals [92] Other Important Information - The company has improved its operational efficiency through the innovative use of AI and machine learning [7][8] - The company is actively engaged in discussions for potential agreements related to LNG and power that would be accretive to shareholders [10] Q&A Session Summary Question: Can you talk about Expand's strategy regarding gas contracts related to power growth opportunities? - Management is excited about opportunities in this space and aims to reduce cash flow volatility through long-term contracts [15][16] Question: What is the duration of the 70% deferred cash tax guidance for 2026? - The duration of tax savings is expected to be long as long as capital spending remains consistent [29] Question: What is the company's appetite for reducing net debt versus returning cash to shareholders? - The company believes strengthening the balance sheet benefits equity holders and will continue to reduce net debt while assessing market conditions [31][32] Question: What has driven the significant increases in footage drilled per day? - The increases are attributed to better integration of data sets and collaboration among teams, with AI playing a key role in optimizing performance [38][39] Question: How does the company view the balance between LNG contracts and other delivery methods? - The company is positioned to respond to various elements of growing demand, including LNG and data center contracts, without favoring one over the other [102][105]

Financial Data and Key Metrics Changes - The company expects to recognize approximately a 50% increase in annual synergies, translating to an additional $425 million in free cash flow for 2025 and $500 million for 2026 before accounting for NYMEX price changes [5][11] - Capital investments for 2025 have been reduced by approximately $100 million while maintaining production at approximately 7.1 Bcfe per day [8][11] - The company plans to return $585 million to shareholders in the first half of the year through dividends and share repurchases [11] Business Line Data and Key Metrics Changes - In Southwest Appalachia, the company improved drilled footage per day by 62%, while in the Haynesville, footage drilled per day improved by 25% [7][8] - The company has achieved a 25% improvement in footage drilled per day since the merger, with well costs in Haynesville around $1,300 per foot [73][74] Market Data and Key Metrics Changes - The company retains operational leverage to the largest gas demand center in North America through its Haynesville position, with over 12 Bcf per day of LNG demand under construction [9][10] - The company expects market volatility to remain a prevailing theme, but believes its investment-grade balance sheet is a strategic asset [11] Company Strategy and Development Direction - The company aims to create long-term value through cost reduction and developing a geographically diverse portfolio serving premium markets [5] - The focus is on optimizing contracts to reduce cash flow volatility and participate in upside opportunities [15][17] - The company is actively engaged in discussions for LNG and power-related agreements that will be accretive to shareholders [10][12] Management's Comments on Operating Environment and Future Outlook - Management is encouraged by the long-term demand outlook for the industry and believes the current macro landscape allows for sustainable value creation [8][12] - The company views the current market conditions as an opportunity to strengthen its balance sheet and enhance shareholder value [11][29] Other Important Information - The company has successfully integrated data sets across the combined companies, leading to improved drilling performance [34] - The company is focused on maintaining flexibility in capital allocation to adapt to market conditions while pursuing long-term growth [87] Q&A Session Summary Question: Can you talk about Expand's strategy regarding gas contracts related to power growth opportunities? - The company is focused on reducing cash flow volatility through long-term contracts and optimizing pricing mechanisms [14][15] Question: Is there urgency in signing deals compared to peers? - Management indicated there is no urgency and is taking a long-term view on LNG and power markets [20] Question: What is the duration of cash tax savings? - The company expects the duration of tax savings to be fairly long as long as capital investment continues at a similar cadence [26] Question: What is the appetite for reducing net debt? - The company is committed to strengthening its balance sheet and will continue to reduce net debt until better opportunities arise [28] Question: What is driving the increase in footage drilled per day? - The increase is attributed to better integration of data sets and the use of AI for optimization [34][36] Question: How does the company view the reporting issues in Louisiana? - Management believes the reporting issues are specific to the state and is working closely with agencies to resolve them [56][101] Question: What is the balance between LNG contracts and data center contracts? - The company is positioned to respond to both LNG and data center demands, leveraging its flexible portfolio [99]

Financial Performance - The company reported approximately $12 billion of adjusted EBITDAX for 2Q25[8] - Capital expenditures totaled approximately $727 million in 2Q25[8] - The company expects to increase net debt paydown to $1 billion in 2025[9] - $585 million was returned to shareholders through dividends and share repurchases in 1H25[9] - The company anticipates approximately $425 million improvement in FCF for 2025[8, 14] Operational Highlights - The company is the largest domestic natural gas producer, with production of approximately 72 Bcfe/d[8] - The company achieved its fastest drilling quarter in company history during 2Q25[9] - The company's annual synergy outlook increased to $600 million, expected by YE26[8] Production and Capital Allocation - The company anticipates full year 2025 production of approximately 71 Bcfe/d[12, 21] - The company reduced FY25 D&C capex spend by approximately $100 million[22] - The company has approximately 19 million net acres and approximately 71 Bcfe/d in 2025[12]